NEWCO FINANCIAL OPERATIONS

NEWCO FINANCIAL OPERATIONS Wes Colwell Chief Financial Officer (2) Total employees = 55 Stephen Douglas Tax (4) Tom Myers Treasury (6) Georganne Hodges Accounting (43) Faith Killen Internal & External Reporting Elaine Schield Accounting Hope Vargas General Accounting, Cash Reporting & A/P Greg Whiting Trading Accounting August 3, 2018

Treasury

Bank Account Structure Account Groupings Commodity Receipts Natural Gas Power General & Administrative Master Account Commodity Disbursements Natural Gas Power Payroll

Commodity Cash Timeline Calendar Month Power Physical Financial Gas OTC Margin Nymex Week 1 Week 2 Week 3 Week 4 ^ ^ & & @ & & # # # # * * * * ^ Majority of physical power settles from the 20th-30th of month. (Terms are net 20). & Majority of Financial Gas –power settles in the first two weeks of each month (within 5 days of pricing). @ Physical gas settlements take place on the 25th of each month. # Fund/ Receive OTC margin (collateral) daily on the second business day following valuation move. * Fund/Receive original margin and variation margin daily with brokers.

Commodity Settlement Process Flows Receipts detail Commodity Settlement Systems Banks Wire Transfers & Checks Invoice level detail Invoice level detail Treasury Software Receipts Detail SAP Disbursements Detail Unify Enpower “Treasury Workstation” Provides review opportunity prior to transmission to bank Banks return confirmation of disbursement

Next Day Cash Forecast Daily Cash Management Utilize “Treasury Workstation” to consolidate cash forecast. Data sources are as follows: SAP provides disbursement data: Commodity G&A (including payroll) Commodity Settlements Accounting provides estimate for cash receipts OTC margin requirement provided by Credit Department Nymex margin provided by Commodity Accounting in a.m. of Settlement Day

Historical Summaries (Direct cash flow) Other Cash Reporting Daily Actual Historical Summaries (Direct cash flow) Long-term Monthly Projections (Price Risk Management “Roll Out”)

Administrative Functions Overnight Investing & Funding Create Local Checks & Wires Letters of Credit Set up Bank Accounts Deposit Checks Issue Stop Payments

ACCOUNTING

Accounting Systems (SAP) Options: (1) Controlling Area Within Enron Temporary) Contemplates SLA with Enron Separate Security Separate Chart of Accounts Control of Separate Hierarchies Licenses come through Enron Can be set up quickly (2) Separate Instance of SAP Ownership of separate servers Staff at Newco or parent level Probably 6 months timing

Other System Issues Settlement system interfaces into G/L Payroll interface XMS or other expense report system NYMEX broker activity – currently manual

Financial & Statistical Reporting Requirements of consolidation system may drive Newco setup decisions (chart of account, lines of business, etc.) Business Line / Team Reporting Preferences Tracking of P/L Categories (prop trading, mid/offer, originations) Statistical Reporting (volumes, number of trades, etc.)